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What is the 20% subsidy that other companies couldn't also have? Other companies could reinvest all their profits and pay close to no taxes as well, right?
by jeffreyrogers 8y ago
What is the 20% subsidy that other companies couldn't also have? Other companies could reinvest all their profits and pay close to no taxes as well, right?
- WalterBright 8y agoThat's correct. Also, anybody can buy&hold AMZN stock long term and not pay regular income tax rates on it. Amazon doesn't get any special tax treatment, and neither do investors in it.
- candiodari 8y ago1) Not paying sales tax in the US due to "interstate commerce" exception 2) Ability to shop around for the cheapest jurisdiction for international sales (which means outside of the US Amazon paid low single digit tax rates on everything) 3) Ability to sell stuff from people and not being forced to prove they pay taxes or have it impounded All 3 above are not available for brick&mortar retailers. In case you were wondering why the CEO of Amazon, Jeff Bezos, is a Wall Street banker and not a geek.